EBK ACCOUNTING PRINCIPLES
13th Edition
ISBN: 9781119411017
Author: Weygandt
Publisher: WILEY
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Maquoketa Services was formed on May 1, 2019. The following transactions took place during the first month. Transactions on May:
Jay Bradford invested $40,000 cash in the company, as its sole owner.
Hired two employees to work in the warehouse. They will each be paid a salary of $3,050 per month. 3. Signed a 2-year rental agreement on a warehouse; paid $24,000 cash in advance for the first year.
Purchased furniture and equipment costing $30,000. A cash payment of $10,000 was made immediately; the remainder will be paid in 6 months.
Paid $1,800 cash for a one-year insurance policy on the furniture and equipment.
Purchased basic office supplies for $2420 cash.
Purchased more office supplies for $1,500 on account.
Total revenues earned were $20,000—$8,000 cash and $12,000 on account.
Paid $400 to suppliers for accounts payable due.
Received $3,000 from customers in payment of accounts receivable.
Received utility bills in the amount of $380, to be paid next month.
Paid the monthly…
Roben Cruse opened the Campus Laundromat on September 1, 2020. During the first month ofoperations, the following transactions occurred.
Sept.1 Roben invested $20,000 cash in the business.2 The company paid $1,000 cash for store rent for September.3 Purchased washers and dryers for $25,000, paying $10,000 in cash and signing a $15,000, 6-month,12% note payable.4 Paid $1,200 for a one-year accident insurance policy.10 Received a bill from the Daily News for online advertising of the opening of the laundromat $200.20 Roben withdrew $700 cash for personal use.30 The company determined that cash receipts for laundry services for the month were $6,200.
Instructionsa. Journalize the September transactions.b. Open ledger accounts and post the September transactions.c. Prepare a trial balance at September 30, 2020.
Mr X enrolls in a 12-month customer service assistance program for a computer software from CYBER COMPANY costing P1,200 per month on August 1, 20x8. Given that the computer assistance occurs evenly throughout the year, CYBER COMPANY uses the “proportion of time” as its measure for membership revenue, what is the amount of sales revenue to be recognized on December 31?
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- TA services were formed on May 1, 2020. The following transactions took place during the first month. May 1 Mr. Tarek Ahmed invested $80,000 in the business, as its sole owner.May 2 Hired two employees, who will be paid a salary $1,000 per month.May 3 Paid $20000 in advance for rent of a warehouse.May 4 Purchased furniture & equipment costing $30,000. $10,000 paid in cash and $20,000 payable in next 6 months.May 5 Paid $22,000 for 1-year insurance policy.May 7 Purchase basic office supplies for $500 on account.May 8 $1,500 received in advance for which services to be performed in June.May 10 Revenue earned in cash $20000 and on account $10000.May 12 Payment to creditor for May 7 transactions.May 16 Received from debtors for May 10 transaction.May 22 Withdraw by owner $ 700.May 27 Purchase of pick-up van $ 5000 on account. Instructions:(a) Pass the Journal Entry & Post to ledger.(b) Prepare Trial Balance.arrow_forwardGreen Wave Company plans to own and operate a storage rental facility. For the first month of operations, the company had the following transactions. 1. Issue 10,000 shares of common stock in exchange for $32,000 in cash. 2. Purchase land for $19,000. A note payable is signed for the full amount. 3. Purchase storage container equipment for $8,000 cash. 4. Hire three employees for $2,000 per month. 5. Receive cash of $12,000 in rental fees for the current month. 6. Purchase office supplies for $2,000 on account. 7. Pay employees $6,000 for the first month’s salaries. Required: For each transaction, describe the dual effect on the accounting equation. For example, in the first transaction, (1) assets increase and (2) stockholders’ equity increases.arrow_forwardPen Supply Corp. began operations on March 1, 20Y5. On this date, the company paid for the following expenses: legal fees related to organization, $5,000; rent for the upcoming month, $1,500; license fees, $2,000; promotional costs, $1,200; and insurance for the fiscal year, $9,000. Prepare the journal entry to record the organizational expenses paid.arrow_forward
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